There are two sides of the trade war between the United States and China. The first is related to commodity trading, where America is constantly struggling with significant shortages. There may be some progress in this area if China makes a big purchase to calm America. He can buy agricultural commodities like expensive civil aviation aircraft, soybean and wheat and American consumer equipment and expensive consumer equipment. It has happened in the past, but even then the business tension was temporarily reduced. More recently, China launched an ambitious import-import fair in Shanghai. There Xi Chinfing talked about China’s commitment to free trade itself. However, he said that in the next 15 years, China’s intent is to import goods worth $ 30 trillion and service import of $ 1,000 million from the US. These figures are very specific but do not seem to be affected by most of China’s business partnerships.
Secondly, there are issues related to intellectual property and industrial policy where China will resist the demand of the US. For example, the initiative called Made in China 2025 is aimed at artificial medicines, quantum computing, China’s dominance in electric vehicles and advanced robotics is to be established. In this, the assistance of government and private sector government companies will be taken. It does not appear that this topic will be included in the agenda of China-US business negotiation. The pressure of the US over this subject is making China more committed. After being self-sufficient at the technical level and strictly sticking to this by the American and western countries, the demand for domestic innovation in China has been rising rapidly. China can also declare that it will not be the condition of a technological transfer for Western companies’ market access, but the worries of the West related to theft of intellectual property are not going to end so easily. In this way, at the end of this month when the US President Trump and Chinese President Xi Chunfing meet in the G-20 Summit, a temporary peace establishment can be seen on the trade front. But the basic complexities will remain intact. In the meeting, US president Trump and Chinese President Xi Jinping meet, then a temporary peace establishment can be found on the trade front. But the basic complexities will remain intact. In the meeting, US president Trump and Chinese President Xi Jinping meet, then a temporary peace establishment can be found on the trade front. But the basic complexities will remain intact.
The United States, Japan and the European Union have recently agreed on a shared initiative to improve the WTO in order to keep an eye on the activities of market discrepancies. This discrepancy is created by promoting subsidies or government undertakings. It has been said to adopt several measures. Proposals are proposed to be hidden and those who do not comply. More stringent rules are being made regarding issues related to intellectual property, demand for technical information is being eliminated in exchange for market access. Government undertakings will also be deeply examined now. Overall policy and procedural transparency will increase. It is clear that this whole exercise will go against China, and there is very little chance that China will be given the market economy status according to its demand in the near future.
There is a security aspect linked to intellectual property issues, and it does not seem that there will be a compromise on this subject. In a recent report, it was said that China has taken help from the intellectual property in civilian military integration, which she received from western companies. It is being used in the defense sector. China is investing in many startups in the United Kingdom and Germany, besides Silicon Valley in the US. This gives him excellent technology, which he is using in his civilian and defense sector. In the coming months, this scope will be very limited. In the same report it was also said that in the US alone alone, 25, 000 Chinese are pursuing higher education in modern science and technology and they will be involved in civil and military industries as well as quality personnel. The US has just recently told its closest allies to Israel that they do not sell high quality products to Chinese companies.
In the past, it has been argued that with the help of capital and technical capabilities, China’s economic development and access to Western markets will help China take the equivalent of the East Asia Chakra of high prosperity. This will open up the market and the politics of it will be more democratic. Due to the deep economic interdependence between the West and China, they were expected to be limited to military competition. These expectations proved to be false even with Xi Xinfing becoming China’s undisputed leader. Trade became a tool of security competition between the US and China.
The question is, how can the current trading corrosion affect the global economy? It does not have two opinions that if the current trade and investment flows are affected then the impact on the global economy will also be affected. China is the ultimate end of the assembly of the product of many countries of Southeast Asia. These products go to America, Europe and Japan. If China’s reach in these markets is affected, then its impact will also be on this supply chain. In such a way, part of China’s work can be done in other countries like Vietnam or Indonesia. China itself could put factories in other countries to avoid the obstruction of the western countries. Excluding vehicle components and medicines, India is not involved in it. But it can be an opportunity for India to connect itself to this supply chain. We should strive to achieve this goal through regional comprehensive economic partnership.
The changing global economic and trade scenario will undoubtedly force China to review its business and investment policies. He needs to find ways to deal with trade war so that the upkeep continues. In this view, India can prove to be a lucrative financial partner. It would be better to remove our differences and start a serious dialogue with China and start a partnership with a shared productivity business and investment partnership. Know whether it is beneficial for both.